inflation adjustment
Cost-of-living correction
An inflation adjustment is a modification made to wages, prices, benefits, or financial figures to account for changes in purchasing power over time.
When economists discuss historical values in inflation-adjusted dollars or adjusted for inflation, they're converting past amounts to reflect what they would be worth today, allowing for meaningful comparisons across different time periods.
Cost-of-living adjustments to Social Security benefits are a common example of inflation adjustments applied automatically.
- deflatorThing that shrinks pressure
- indexationAutomatic adjustment to benchmarks
- price levelAggregate cost measurement
- priceMonetary value assigned
- CPIInflation measurement abbreviation
base year · bracket creep · uprating · cost of living · annual increase · real value · RPI · price index · real income · buying power · dollar value · revaluation · cost-of-living index · progressive taxation · escalator · Social Security · recalculation · nominal